July 30, 2016 10:30 PM ET

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Company Overview of Consumer Financial Protection Bureau

Company Overview

Consumer Financial Protection Bureau is an independent bureau providing consumers with financial markets information. The bureau aims to implement and enforce consumer financial laws, review business practices, monitor the financial marketplace, and establish consumer website and hotline to address the complaints and questions. Consumer Financial Protection Bureau was formed in 2010 and is headquartered in Washington, District of Columbia.

PO Box 4503

Iowa City, IA 52244

United States

Founded in 2010

Phone:

855-411-2372

Fax:

855-237-2392

Key Executives for Consumer Financial Protection Bureau

Chief Financial Officer
Chief Operating Officer
Assistant Director of Mortgage and Home Equity Markets
Assistant Director of Credit Information Markets
Compensation as of Fiscal Year 2016.

Consumer Financial Protection Bureau Key Developments

Consumer Financial Protection Bureau Announces Executive Appointments

Consumer Financial Protection Bureau named six people to top staff positions, including the head of a new office for small-business lending. The bureau tapped Grady Hedgespeth to the new position of assistant director for the Office of Small Business Lending Markets. Hedgespeth had been the director of the Office of Economic Opportunity for the U.S. Small Business Administration, which she joined in 2007. Five of the six hires already work at the CFPB. Four of them have served in the same positions but on an acting basis. Seth Frotman was named student loan ombudsman and assistant director for the Office for Students and Young Consumers, positions he has held on an acting basis. John Schroeder was name Midwest regional director for the Office of Supervision Examinations. Katherine Gillespie will serve as the deputy associate director for the CFPB's Consumer Education and Engagement division, a position she also held on an acting basis. Chris Johnson was named the assistant director for the Office of Consumer Response, a job he has held on an acting basis. Finally, Elizabeth Ellis was named deputy associate director for the external affairs division, replacing Lisa Konwinski. Ellis previously was the deputy assistant director for the Office of Financial Institutions and Business Liaison.

Consumer Financial Protection Bureau Fines Citigroup, Solomon & Soloman and Faloni & Associates

The Consumer Financial Protection Bureau hit Citigroup with $8 million in fines and restitution for allegedly selling credit card debt with inflated interest rates and failing to send consumer payments to debt buyers. In a separate action, the CFPB ordered Citibank to comply with a New Jersey state court order to refund $11 million to consumers and forgo collecting another $34 million in credit card debts from 7,000 consumers. Two debt collection firms that once worked for Citi - Solomon & Soloman and Faloni & Associates - also were ordered to pay civil penalties for altering the dates and amounts of debt owed by consumers. The CFPB said Citibank 'broke the law' when it provided inaccurate and inflated annual percentage rate information on almost 130,000 charged-off credit card accounts that were sold to debt buyers from 2010 to mid-2013. Citibank overstated the APR on accounts that were sold to 16 different debt buyers. In some cases, Citi claimed the APR was 29% when it was actually zero. The debt buyers then used the inaccurate APR information, collecting $4.9 million from consumers. The CFPB ordered Citibank to refund $4.9 million to 2,100 consumers that made payments to debt buyers from February 1, 2010 to November 14, 2013. The bank also must pay a $3 million penalty to the CFPB's civil penalty fund. Additionally, the CFPB said that Citibank delayed sending nearly $1 million in payments from 14,000 customers to debt buyers, in violation of the Dodd-Frank Act. Since the account balances were not updated, consumers were subjected to debt collection efforts even after they had already paid off their accounts. Going forward, Citi cannot sell any debts that cannot be verified. Citibank also has to give consumers information about the debt, including the name of the original creditor, the credit agreement and account statements. The bank must also include provisions in contracts with debt sellers prohibiting buyers from reselling the debt again. Separately, the CFPB ordered two debt collection law firms to pay civil penalties for altering affidavits and the amount of debt allegedly owed in violation of the Fair Debt Collection Practices Act. Solomon & Solomon was ordered to pay a $65,000 penalty; Faloni & Associates must pay $15,000.

HSBC Holdings plc Settles US Mortgage Servicing Investigations for USD 470 Million

HSBC Holdings Plc agreed to pay US authorities USD 470 million (EUR 422 million) to resolve claims of 'abusive practices' at its mortgage servicing unit. The Justice Department, the Consumer Financial Protection Bureau and the Department of Housing and Urban Development brought claims against HSBC over its foreclosure and loan origination practices, as did the authorities in 49 US states and the District of Columbia. The investigation began towards the end of 2010, when it emerged that five leading US banks had been signing off thousands of foreclosure documents with no proper review. Among the targeted lenders were Bank of America Corp. and JPMorgan Chase & Co. According to the statement from the Justice Department, USD 370 million of the total amount HSBC is to pay will be used to provide consumer relief such as lowering the principal on mortgages. The federal government will collect USD 40.5 million and USD 59.3 million will go to state authorities, which will use the money to reimburse bank customers affected by foreclosure. The remainder will go towards covering investigative expenses incurred by state attorneys general. Under the terms of the settlement agreement, HSBC is required to offer certain relief to mortgage holders, for example reduction in the principal amount and refinancing for underwater mortgages. The bank is also obliged to take certain corrective actions and set up an independent monitor to ensure compliance with the settlement.

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